SEBI probes HDFC Bank CEO's resignation letter
Business
The Securities and Exchange Board of India, or SEBI, has begun a preliminary review of Chakraborty's resignation letter: he said his values didn't match the bank's practices.
The resignation letter triggered an 8.7% slide in the stock the following day and wiped $16.3 billion in market value over three sessions.
Investigation into possible governance issues
The investigation is about whether Chakraborty and other directors did enough to share important information with investors, especially those holding smaller stakes.
Even though India's central bank didn't spot big governance issues, SEBI wants to make sure nothing was hidden.
Meanwhile, HDFC Bank has brought in outside law firms to review things independently, but they haven't reached out to Chakraborty yet.